Steel News Roundup (Dec 6)

SHANGHAI, Dec 6 (SMM) - This is a roundup of news in the steel industry for last week.

National Bureau of Statistics: Manufacturing PMI was 50.1% in November, up 0.9 percentage point from the previous month.

The China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics released on November 30 the China Manufacturing Purchasing Managers Index (PMI), which stood at 50.1%, an increase of 0.9 percentage points from the previous month. The index returned to the expansion range after moving below 50% for two months in a row, indicating that the economy has stabilised after two consecutive months of correction.

The National Development and Reform Commission solicits opinions on the signing of the long-term contracts of coal for 2022, the benchmark prices of coal transported through waterway may be raised by about 31% to 700 yuan/mt.

On December 3, the National Coal Trade Fair announced the draft of the long-term coal contract and plan for 2022. The Draft was prepared by the National Development and Reform Commission, which clarified that the scope of signing of the coal long-term contracts in 2022 will be further expanded. In principle, coal production enterprises with an approved capacity of 300,000 mt or above will be included in the scope of signing. On the demand side, power generation and heating companies are required to 100% source coal through long-term contracts except imported coal. In terms of prices, the "base price + floating price" pricing mechanism remains unchanged, but the Draft suggests that the next year's thermal coal long-term contracts shall be adjusted monthly. The adjustment range of 5,500 kcal thermal coal is between 550-850 yuan/mt, of which the benchmark price of coal transported through waterway under long-term contracts is 700 yuan/mt, which is about 31% higher than the previous 535 yuan/mt.

Ministry of Industry and Information Technology: By 2025, the intensity of carbon emissions will continue to decline, and carbon dioxide emissions per unit of industrial added value will be reduced by 18%.

The Ministry of Industry and Information Technology issued the 14th Five-Year Plan for Green Industrial Development and proposed that by 2025, the green and low-carbon transformation of industrial structure and production methods shall achieve significant results, green and low-carbon technology and equipment will be widely used, energy resource utilisation efficiency will be greatly improved, and green manufacturing will be improved as a whole, which will lay a solid foundation for carbon peaking in the industrial sector in 2030. Carbon emission intensity shall continue to decline. Carbon dioxide emissions per unit of industrial added value will be reduced by 18%, and the total carbon emissions control of key industries such as iron and steel, non-ferrous metals, and construction steel shall achieve intermittent results. The emission intensity of pollutants will also drop significantly. The ability to control the source of harmful substances will be strengthened further, the level of cleaner production will be significantly improved, and the emission intensity of major pollutants in key industries will be required to be reduced by 10%.

The fifth batch of the second round of central ecological and environmental protection inspections fully launched

The fifth batch of the second round of environmental protection inspection was implemented according to Environmental Protection Inspection Work Regulations approved by the Party Central Committee and the State Council. In order to coordinate the smooth operation of the economy, guarantee people’s livelihood, normalise pandemic prevention and control, and ecological environmental protection, the Central Ecological Environmental Protection Supervision Office recently sent a letter to several provinces (regions) requesting the implementation of the central government's decisions and deployment, accurately and scientifically promote simultaneous supervision, reform in accordance with the law, prohibit "one size fits all" and "indiscriminate punishment” actions, and simplify the reception arrangements for inspectors. 4 central ecological and environmental protection inspection teams have been set up to carry out inspections for one month in Heilongjiang, Guizhou, Shaanxi, and Ningxia.

Guangdong Provincial People's Government holds a meeting with Evergrande

China Evergrande Group issued an announcement on the Hong Kong Stock Exchange on December 3 that it could not perform its guarantee obligations. The People's Government of Guangdong Province paid great attention to this and immediately held a meeting with Mr. Xu Jiayin, the actual controller of China Evergrande Group. At the request of Evergrande Real Estate Group Co., Ltd., in order to effectively resolve risks, protect the interests of all parties, and maintain social stability, the People's Government of Guangdong Province agreed to send a working group to Evergrande to supervise and promote risk management, and urge the effective strengthening of internal control to maintain normal operations.